South African central bank fines HSBC for lax money laundering controls

0
260
FILE PHOTO: A HSBC and a Barclays bank building is seen at Canary Wharf in London, Britain May 17, 2017. REUTERS/Stefan Wermuth/File Photo
FILE PHOTO: A HSBC and a Barclays bank building is seen at Canary Wharf in London, Britain May 17, 2017. REUTERS/Stefan Wermuth/File Photo

The South African Reserve Bank (SARB) has fined HSBC’s local business 15 million rand ($1.1M) for what it termed as weaknesses in detecting money laundering and terrorism financing.

The central bank also ordered the bank to fix the problems.

SARB’s Prudential Authority, which monitors the country’s lenders, said HSBC’s South African branch had already taken the measures required to address the issues.

“Certain weaknesses were identified in HSBC’s processes which inhibited HSBC from proactively detecting potential money laundering and the financing of terrorism,” the authority said in a statement.

Reuters reports that the bank had accepted the sanctions applied, which followed an inspection in 2016.

“We can confirm that the issues identified by SARB during the 2016 inspection have been fully remediated,” HSBC said.